The presence of counterfeit products significantly tarnished Alibaba's reputation in the market. A few years back, Alibaba faced criticism from China's regulatory authority, the State Administration for Industry and Commerce (SAIC), for not doing enough to stop illegal activities on its Taobao marketplace. The American Apparel and Footwear Association also expressed concerns about the sale of counterfeit products on Alibaba's C2C marketplace. Furthermore, in May 2015, Kering, the owner of luxury brands Gucci and Saint Laurent, filed a lawsuit against Alibaba on charges of trademark infringement and counterfeiting. These incidents have raised questions about Alibaba's ability to control the quality of products sold on its platforms, thereby damaging its reputation.
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